info@affluentcpa.com | Blog | Download Our App
info@affluentcpa.com | +1-301-978-3016

Do you need a financial statements audit?

Call us for a free proposal

Contact Us

Why do you need an audit of financial statements ?

Improves Credibility

Audit of financial statements adds credibility to the reported financial position and performance of an entity. It also helps not-for-organizations and commercial companies bid for contracts and/or apply for federal and state grant funds.

Legal Requirement

The Securities and Exchange Commission requires that all entities that are publicly held must file annual reports with audited financial statements.

Credit Purposes

Lenders usually require audited financial statements to assess credibility of an entity’s financial stability and performance. Audited financial statements are normally requested at the time of approving an initial credit facility or loan and to be submitted on an annual basis as part of debt covenants.

Suppliers

Suppliers may also require audited financial statements before they will be willing to extend trade credit, especially when the amount of requested credit is substantial.

What responsiblities are included in an Audit Report ?

An audit report includes management responsibility for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, which includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

An audit report also includes auditors’ responsibility as to express an opinion on the financial statements based on the audit. An audit report also requires an auditor to state that the audit was conducted in accordance with auditing standards generally accepted in the United States of America, which require that an auditor plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on an auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, an auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, an auditor does not express an opinion on the effectiveness of entity’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Sufficient and appropriate audit evidence obtained during an audit supports basis of an audit opinion.

Contact Us

Name (required)

Email (required)

Phone (required)

Your Message

Process For Financial Statements Audit

Audit Strategy

Independent auditor seek to gather sufficient and, appropriate audit evidence to support an opinion about the fairness of financial statements. In developing an audit strategy, an independent auditor considers internal controls & determines whether to rely on those controls for various components of the audit.

Audit Procedure

An auditor can perform a wide variety and combination of audit procedures at different stages of an audit to gather the evidence needed to support an independent opinion on the fairness of the financial statements.

Evaluates Results

As the audit progresses, the audit team completes its tests and evaluates the results. An audit opinion can be unqualified, qualified, disclaimer or adverse.

Communicates Results

The auditor then communicates the results of an audit to the audit committee or the governing body of the entity audited, including internal control deficiencies noted during the audit.

Why Choose Us as Independent Auditor of your Financial Statements

  • Risk Based Audit Approach

    We have adopted a risk-based audit approach. Our work includes an understanding and testing of internal controls, interviewing accounting and non-accounting management personnel to understand the business objectives and risks, new business developments, review of new contracts and how business risks transpires as audit risks.

  • Documentation & Communication

    We document and test each significant business operating cycle such as treasury, accounts receivable and revenue recognition, accounts payable and expense accruals, accounting for inventory, payroll, fixed assets etc. Our work involves communication with third parties such as banks, external legal counsels and accounts receivable etc. We also perform inventory physical count observation and test counts.

  • Paper-less Audit Tools

    Our audit tools include paper-less audit software and applications, including detailed work programs to document the audit procedures performed and supporting documents such as copies of significant contracts, bank confirmations, investment balance confirmations, legal confirmation etc. Based on our findings, we issue a report on whether the financial statements are free of material misstatements and prepared in accordance with the relevant generally accepted accounting principles. Our risk based approach and paperless working environment has helped us work in a very efficient and effective manner, reducing the overall cost of an audit and improving our internal documentation and compliance with appropriate professional standards.

why

Do you need a financial statements audit?

Call us for a free proposal

Contact Us